Goldcorp’s Jeannes: ‘We’re close to the end of the gold bear market'(Northern Miner – November 2, 2015)

The Northern Miner, first published in 1915, during the Cobalt Silver Rush, is considered Canada’s leading authority on the mining industry.

VANCOUVER — Despite posting a US$192 million net loss during the third quarter, Goldcorp’s (TSX: G; NYSE: GG) management team is telling investors to focus on what it labels “strong fundamentals.”

The company churned out record quarterly gold production and generated around US$243 million in free cash flow over the past three months. President and CEO Chuck Jeannes pointed out that successful cost control measures and promising macro-economic conditions should contribute to brighter days ahead.

Goldcorp produced 922,200 oz. during the third quarter at all-in sustaining costs of US$848 per oz. Assuming an average realized gold price of $1,114 per oz., the company reported adjusted revenues of US$1.3 billion and adjusted operating cash flow of US$374 million for the quarter.

Excluding unrealized losses from the foreign exchange translation on deferred income taxes, Goldcorp’s adjusted net loss totalled US$37 million, or 4¢ per share, during the quarter, which compares to adjusted earnings of US$65 million, or 8¢ per share, in the previous quarter.

“We remain well-positioned for a strong finish to a great year. The market performance of the gold miners has outperformed the price of gold over the last several months. Investors have begun to absorb the reality of improved operating and financial performance of the sector at a lower price environment,” Jeannes commented during a conference call.

“We also believe we’re getting close to the end of the gold bear market. U.S. Fed actions and inactions, Asian economic data and the other factors have done little to dampen the world’s appetite for owning gold. The message here is simple: Gold supply will be tightening going forward and those companies, like ours, with the best assets will be uniquely positioned to benefit from this trend,” he added.